Global Employment Trends for Women March 2009

Global Employment Trends for Women March 2009

Copyright International Labour Organization 2009 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Global Employment Trends for Women International Labour Office - Geneva: ILO, 2009 First published 2009 ISBN 978-92-2-122122-7 (print) ISBN 978-92-2-122123-4 (web pdf) ILO Cataloguing in Publication Data Global employment trends for women: March 2009 / International Labour Office. - Geneva: ILO, 2009 78 p. ISBN: 9789221220466;9789221220473 (web pdf) International Labour Office economic recession / woman worker / employment / unemployment / labour force participation / working poor / trend / forecast / developed countries / developing countries 03.04.3 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org Visit our website: www.ilo.org/publns Printed by the International Labour Office, Geneva, Switzerland

Contents Acknowledgements...5 1. Introduction...6 2. Economic growth, the labour market and gender inequality...8 Gender inequality in sectoral employment and vulnerable employment... 10 Gender inequality in African agriculture... 14 Gender inequality in wages... 17 Gender inequality in poverty... 19 3. Gender impact of the economic crisis in developed economies...20 4. Labour market outlook for 2008 and 2009: scenarios...26 Scenarios for 2009: unemployment...26 Scenarios for 2008 and 2009: vulnerable employment...29 5. Conclusions...32 Policy orientations...32 Annexes Annex 1. Tables... 35 Table A1. Economic growth, world and regions... 35 Table A2. Unemployment rate, world and regions (%)... 36 Table A3. Unemployment in the world... 37 Table A4. Labour force participation rate in the world (%)... 37 Table A5. Adult employment-to-population ratio, world and regions (%)... 38 Table A6a. Sectoral share in employment, world and regions, both sexes (%)... 39 Table A6b. Sectoral share in employment, world and regions, females (%)... 40 Table A6c. Sectoral share in employment, world and regions, males (%)... 41 Table A7. Vulnerable employment shares, world and regions (%)... 42 Table A8. Working poor indicators, world and regions... 43 Table A9. Netherlands, seasonally adjusted unemployment, by sex, July 2007- December 2008... 44 Table A10. Poland, seasonally adjusted unemployment, by sex, July 2007-December 2008... 45 Table A11. Canada, seasonally adjusted unemployment, by sex, July 2007-December 2008... 46 Table A12. Australia, seasonally adjusted unemployment, by sex, July 2007- December 2008... 47 Table A13. United States, seasonally adjusted unemployment, by sex, July 2007- December 2008... 48 Table A14. France, seasonally adjusted unemployment, by sex, July 2007-December 2008... 49 Table A15. Female employment shares by sector, selected economies, 1995, 2000 and 2005.. 50 Table A16. United States, employment by sector, by sex... 51 Annex 2. Scenarios... 52 Table S1. 2009 Unemployment scenarios (rates)... 52 Table S2. 2009 Unemployment scenarios (numbers of people)... 53 Table S3. 2009 Female unemployment scenarios (rates)... 54 Table S4. 2009 Female unemployment scenarios (numbers of people... 55 Table S5. 2009 Male unemployment scenarios (rates)... 56 Table S6. 2009 Male unemployment scenarios (numbers of people)... 57 Table S7. 2008-2009 Vulnerable employment scenarios (rates)... 58 Table S8. 2008-2009 Vulnerable employment scenarios (numbers of people)... 59 Table S9. 2008-2009 Female vulnerable employment scenarios (rates)... 60 Table S10. 2008-2009 Female vulnerable employment scenarios (numbers of people)... 61 Table S11. 2008-2009 Male vulnerable employment scenarios (rates)... 62 Table S12. 2008-2009 Male vulnerable employment scenarios (numbers of people)... 63 Global Employment Trends for Women, March 2009 3

Annex 3. Regional figures... 64 Annex 4. Note on world and regional tables... 76 Annex 5. Methodologies for constructing scenarios... 78 Figures 1. Global unemployment trends and economic growth, by sex, 1998-2008... 8 2. Adult employment-to-population ratios, by sex and region, 1998 and 2008 (%)... 9 3. Distribution of employment by sector (sectoral employment as percentage of total employment), by sex and region, 2008... 11 4. Distribution of female status in employment, 2007 (percentage point change from 1997 in parentheses)... 12 5a. Female employment in agriculture, by status, 1998-2008, North Africa (thousands)... 15 5b Female employment in agriculture, by status, 1998-2008, Sub-Saharan Africa (thousands)... 15 6. Seasonally adjusted monthly unemployment rates, by sex, July 2007-December 2008... 21 7. Female shares of sectoral employment in 24 developed economies, 2005... 24 8. in sectoral employment in the United States, December 2007-December 2008p... 24 9. Global unemployment according to three scenarios... 27 10. Global vulnerable employment according to three scenarios... 30 Boxes 1. Women in Pakistan s labour market... 13 2. Characteristics of women in African agriculture... 16 3. Lower wages of Bangladeshi women raise concerns about discrimination... 18 Global Employment Trends for Women, March 2009 4

Acknowledgements The Global Employment Trends for Women 2009 report was prepared by the ILO s Employment Trends Team, under the direction of Lawrence Jeff Johnson, and was the responsibility of Theo Sparreboom, with contributions from Jon Beaulieu, Marie-Thérèse Dupré, Steven Kapsos (ILO Regional Office for Asia and the Pacific), Ina Pietschmann (ILO Office in Pakistan), and Dorothea Schmidt (ILO Subregional Office for North Africa). We would especially like to thank the Bureau for Gender Equality, in particular Jane Hodges and Susan Maybud, for their significant support and collaboration. The manuscript benefited greatly from the comments and suggestions of ILO Employment Sector management, including José Manuel Salazar-Xirinachs and Duncan Campbell, as well as from Stephen Pursey and Sophia Lawrence of the Policy Integration and Statistics Department, and Raymond Torres from the International Institute for Labour Studies. Rob Clark edited the report. This report would not have been possible without the continuing collaboration of the ILO Bureau of Statistics, and the hard work on organizing and preparing data and information by Philippe Blet, Sara Elder, Isabelle Guillet and Alan Wittrup. We take this opportunity to thank all institutions involved in the collection and dissemination of labour market information and, in particular, national statistical agencies. The current run of Trends Econometric Models was the responsibility of Theo Sparreboom and Yves Perardel. The maintenance and development of the models profit from close collaboration with Steven Kapsos (ILO Regional Office for Asia and the Pacific) and Jean-Michel Pasteels. Research assistance was provided by Albert Choi, Sean Connolly, Thomas Debrouwer, and Francisco Guerreiro. We would like to express our thanks to Zohreh Tabatabai, Tom Netter, Karen Naets- Sekiguchi, Hans von Rohland, Laetitia Dard, Martin Murphy and all our other colleagues in the Department of Communication and Public Information for their continued collaboration and support in bringing the Global Employment Trends to the media s attention worldwide. Finally, members of the team wish to express their deep appreciation to individuals not listed here who assisted or provided guidance during the development and implementation of the project. Global Employment Trends for Women, March 2009 5

1. Introduction The Global Employment Trends 2009 examined the most current information available in order to assess the impact of the financial crisis and slowdown in world economic growth on jobs and what we could expect from several possible scenarios for the way the situation might evolve in the year ahead. This issue of the Global Employment Trends for Women looks at the gender aspects of this impact, and updates indicators on the situation of women in labour markets around the world. This report reconfirms that gender inequality remains an issue within labour markets globally. Women suffer multiple disadvantages in terms of access to labour markets, and often do not have the same level of freedom as men to choose to work. Gender differences in labour force participation rates and unemployment rates are a persistent feature of global labour markets. In 2008, an estimated 6.3 per cent of the world s female labour force was not working but looking for work, up from 6.0 per cent in 2007, while the corresponding rate for males was 5.9 per cent in 2008, up from 5.5 per cent in 2007. Women also face constraints in terms of sectors of economic activity in which they would like to work and working conditions to which they aspire. Women are overrepresented in the agricultural sector, and if the more industrialized regions are excluded, almost half of female employment can be found in this sector alone. Women are also often in a disadvantaged position in terms of the share of vulnerable employment (i.e. unpaid family workers and own-account workers) in total employment. These workers are most likely to be characterized by insecure employment, low earnings and low productivity. Those women who are able to secure the relative comfort of wage and salaried employment are often not receiving the same remuneration as their male counterparts. Gender wage differentials may be due to a variety of factors, including crowding of women in low paying industries and differences in skills and work experience, but may also be the result of discrimination. Given the constraints women are facing, promoting gender equality and empowering women is not only an important goal of the Millennium Declaration in itself, 1 it is also pivotal to achieving the new target on full and productive employment and decent work for all, and virtually all remaining goals and targets. By the end of 2008, working poverty, vulnerable employment and unemployment were beginning to rise as the effects of the economic slowdown spread. With the deepening of the recession in 2009, the global jobs crisis is expected to worsen sharply. Furthermore, we can expect that for many of those who manage to keep a job, earnings and other conditions of employment will deteriorate. The impact of the crisis will be felt by both men and women, but not necessarily in the same manner. This report presents alternative scenarios for selected labour market indicators in 2008 and 2009 in order to illustrate the effect on gender differentials in labour markets on the basis of changes in the economic environment. A distinction should be made the continued disadvantaged position of women in global labour markets, and the immediate impact of the current economic crisis. In developed economies, there are signals that the crisis may be at least as detrimental for men as for women, and possibly more so. This is suggested by the stronger increase of the unemployment rate in developed economies for men compared to women in 2008 (1.1 percentage points for men versus 0.8 points for women). This report highlights some factors at the country level that influence the gender impact in developed economies, as well as the variation in country experiences. Access to full and productive employment and decent work is crucial for all, and decent work deficits are the primary cause of poverty and social instability. The trends summarized in this report are therefore extremely worrying for both women and men, and serve to highlight the continued importance of an internationally coordinated effort to stop the slowdown and start the global economy onto a much more sustainable path. 1 See: http://www.un.org/millennium/declaration/ares552e.pdf and http://www.un.org/millenniumgoals/. Global Employment Trends for Women, March 2009 6

This issue of Global Employment Trends for Women starts with an analysis of recent labour market developments based on currently available information (Section 2; see Annex 1 for tables referred to in this report; Annex 2 for scenarios; Annex 3 for regional figures and groupings of economies; and Annex 4 for a note on the methodology used to produce world and regional estimates). Section 3 looks at the gender impact of the economic crisis in developed economies, followed by the projection of labour market indicators for 2008 and 2009 in Section 4 (see Annex 5 for methodological details). A final Section 5 concludes, and highlights a number of policy considerations. Global Employment Trends for Women, March 2009 7

2. Economic growth, the labour market and gender inequality In January 2009, the IMF again revised the global economic outlook downward, following similar revisions in October and November of 2008. According to the new projections, global economic growth in 2009 will be only 0.5 per cent. This is considerably lower than was expected in November 2008, and the implications for the 2009 labour market projections published in the Global Employment Trends in January 2009 will be analysed in a later section below (see Table A1 for revised estimates of economic growth). The new estimate for global economic growth in 2008 is 3.4 per cent, which is 0.4 percentage points lower than the estimate produced in late 2008. 2 As Figure 1 shows, global economic growth in 2008 was significantly below the rates seen in recent years, which resulted in a major weakening in a number of labour markets. After four consecutive years of decreases, the global unemployment rate increased from 5.7 per cent in 2007 to 6.0 per cent in 2008 (Table A2). The ranks of the unemployed increased by 13.8 million people 2007 and 2008, which is the largest year-on-year increase in the period for which global estimates are available. 3 The global number of unemployed in 2008 is estimated at 193 million. 4 200 190 Figure 1 Global unemployment trends and economic growth, by sex, 1998-2008* Total unemployment Global unemployment rate (%) GDP growth rate (%) Male unemployment rate (%) Female unemployment rate (%) 8.0 7.0 million 180 170 6.0 5.0 4.0 % 160 3.0 150 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 *2008 are preliminary estimates Source: ILO, Trends Econometric Models, January 2009, see also source of Table A2 2.0 2 World output in 2007 was revised upward (from 5.0 to 5.2 per cent), which also has an effect on the global and regional estimates of labour market indicators for previous years produced in this report in comparison with the Global Employment Trends 2009 released in January 2009. See IMF, World Economic Outlook (Washington, DC, October 2008), updated in January 2009; http://www.imf.org/external/pubs/ft/weo/2009/update/01/index.htm. 3 Global and regional estimates are produced for the period 1991 to the present year. 4 For the definition of unemployment, and concepts and definitions of all labour market indicators discussed in this report, please see Key Indicators of the Labour Market, 5th Edition (Geneva, ILO, 2007), in particular the references to resolutions adopted by the International Conference of Labour Statisticians. See: http://www.ilo.org/public/english/employment/strat/kilm/. Global Employment Trends for Women, March 2009 8

The unemployment rate for women was 6.3 per cent in 2008, as compared to a rate of 5.9 per cent for men. Between 2007 and 2008, the unemployment rate increased for both men (0.4 percentage points) and women (0.3 percentage points), thus slightly reducing the gender gap in unemployment rates that has been seen in the past decade (Figure 1). In terms of numbers of unemployed, 112 million out of the total of 193 million are men, and 81 million are women (Table A3). The gender gap in the unemployment rate is one indication of the gender inequality in global labour markets. Another important aspect of this inequality is the difference in access to labour markets, as labour market access has much to do with economic empowerment for women. Even though global male and female labour force participation rates show signs of conversion, the gap is narrowing at a very slow pace and it still amounted to almost 25 percentage points in 2008 (Table A4). Women made up 40.5 per cent of the global labour force in 2008, up from 39.9 per cent in 1998. Similar to labour force participation, there is a large gender gap in employment-to-population rates, and this gap is narrowing also very slowly. Globally, the employment-to-population rate for the female adult population increased by 1.2 percentage points 1998 and 2008, as opposed to a decrease by 1.1 percentage points for male adults (see Table A5). 5 Regional differences in both levels and changes over time are shown in Figure 2. Figure 2 Adult employment-to-population ratios, by sex and region, 1998 and 2008* (%) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 70.5 69.8 67.5 68.7 50.4 51.0 48.3 49.0 Female 1998 Female 2008 Male 1998 Male 2008 84.4 82.5 70.0 69.3 88.6 89.1 87.6 86.2 82.0 81.7 81.9 82.2 59.9 58.7 52.6 44.2 37.6 36.7 81.7 81.0 86.2 85.4 62.9 60.8 30.0 20.0 10.0 20.5 24.7 22.6 27.0 0.0 Developed Economies and European Union Central and South Eastern Europe (non-eu) & CIS East Asia South-East Asia and the Pacific South Asia Latin America and the Caribbean Middle East North Africa *2008 are preliminary estimates Source: ILO, Trends Econometric Models, January 2009, see also source of Table A2 Sub- Saharan Africa 5 Excluding youth (aged 15-24), thus focusing on adults (aged 25 and above), allows for an analysis which mostly excludes the effects of enrolment in educational and training programmes on labour force participation and employment-to-population rates. Global Employment Trends for Women, March 2009 9

The female adult employment-to-population rate increased in seven out of nine regions. The largest increases can be seen in Caribbean, the Middle East and North Africa, but the rates remain well below 30 per cent for adult women in the latter two regions. Only East Asia and South-East Asia and the Pacific saw a decrease. In East Asia, however, the female adult employment-to-population rate is very high and the gender gap in employment-to-population rates is the smallest of all regions. In most regions, the male adult employment-to-population rate decreased 1998 and 2008, North Africa and Central and South Eastern Europe (non-eu) & CIS being the exceptions. Annex 3 presents more detailed figures that show adult employment-topopulation ratios in each region over time. It is clear that, despite the progress made in many regions, far fewer women participate in labour markets than men. In developed economies, part of the gender gaps in participation and employment can be attributed to the fact that some women freely choose to stay at home and can afford not to enter the labour market. Yet in some developing regions of the world, remaining outside of the labour force is not a choice for the majority of women but an obligation; it is likely that women would opt to work in these regions if it became socially acceptable to do so. This of course does not mean that these women remain at home doing nothing; most are heavily engaged in household activities and unpaid family care responsibilities. Regardless, because most female household work continues to be classified as non-economic activity, the women who are thus occupied are classified as outside of the labour force. While it may not be not correct to assume that all women want employment, it is safe to say that women want to be given the same freedom as men to choose to work and to earn a salary if they want to. This is unlikely to be the case. Gender inequality in sectoral employment and vulnerable employment Out of the 3.0 billion people that were employed around the world in 2008, 1.2 billion are women (40.4 per cent). In which sectors are women working, and what are the working conditions faced by women? As shown in Figure 3, only a small proportion of employed women are working in industry (18.3 per cent in 2008, as compared to 26.6 per cent of men); the large majority are in agriculture and, increasingly, in the services sector. The services sector accounted for 46.3 per cent of all female employment in 2008, as compared to 41.2 per cent of male employment (Table A6a-c). The global difference the share of industrial employment in total male and female employment is found in all regions, ranging from a low of 0.5 percentage points in East Asia to 22.5 points in the Developed Economies and the European Union (see Figure 3). The picture with respect to the other two sectors is more varied. In three regions the share of services in total male employment exceeds the corresponding share in total female employment, and in four regions the same is true for the share of agriculture. Overall, women are still overrepresented in the agricultural sector. Globally, the share of women employed in agriculture stands at 35.4 per cent, as compared to 32.2 per cent for men, but this proportion rises to almost half of all female employment, at 48.4 per cent, if the more industrialized regions such as the Developed Economies and the European Union, Central and South Eastern Europe (non-eu) & CIS and Caribbean are excluded. The corresponding percentage for males is 40.1, resulting in a difference of almost 8 percentage points in the remaining regions of the world. In Sub-Saharan Africa and South Asia the agricultural sector makes up more than 60 per cent of all female employment. Global Employment Trends for Women, March 2009 10

Figure 3 Distribution of employment by sector (sectoral employment as percentage of total employment), by sex and region, 2008* 100% Share in total employment 80% 60% 40% 20% 0% M F M F M F M F M F M F M F M F M F Developed Economies & European Union Central & South Eastern Europe (non- EU) & CIS East Asia South-East Asia & the Pacific South Asia Latin America & the Caribbean Middle East North Africa Sub-Saharan Africa % Industry % Services % Agriculture *2008 are preliminary estimates Source: ILO, Trends Econometric Models, January 2009, see also source of Table A2 Apart from differences in sectoral employment men and women, there are important differences in working conditions. At the global level, the share of vulnerable employment in total female employment was 52.7 per cent in 2007, as compared to 49.1 per cent for men, which represents a decline of 0.6 percentage points over the previous year for both men and women (Table A7). 6 The move away from vulnerable employment into wage and salaried work can be a major step toward economic freedom and self-determination for many women. Economic independence or at least co-determination in resource distribution within the family is highest when women earn wages and salaries or are employers, lower when they are own-account workers and lowest when they are contributing family workers. The share of women in wage and salaried work grew from 41.8 per cent in 1997 to 45.5 per cent in 2007, but the status group of female own-account workers saw a stronger increase (see Figure 4). 6 The indicator of vulnerable employment calculates the sum of own-account workers and contributing family workers as a share of total employment. Contributing family workers and own-account workers are less likely to have formal work arrangements, and often carry a higher economic risk, which allows for the usage of the indicator on vulnerable employment in an assessment of decent work. If the proportion of vulnerable workers is sizeable, it may be an indication of widespread poverty. The poverty connection arises because workers in the vulnerable statuses lack the social protection and safety nets to guard against times of low economic demand and often are incapable of generating sufficient savings for themselves and their families to offset these times. Some limitations of the indicator are: (1) there might be people that carry a high economic risk despite the fact that they have a wage and salary job, and the latter should not be equated to decent work; (2) unemployed people are not covered even though they are vulnerable; (3) there can be people in the two vulnerable status groups who do not carry a high economic risk, especially in developed economies. Despite these limitations, vulnerable employment shares are indicative for informal economy employment, particularly for the less developed economies and regions. However, vulnerable employment numbers should be interpreted in combination with other labour market indicators such as unemployment and working poverty. For more details see Chapter 1 in the Key Indicators of the Labour Market, 5th Edition (Geneva, ILO, 2007; see: http://www.ilo.org/public/english/employment/strat/kilm/) and Employment Sector Working Paper No. 13, Assessing vulnerable employment: The role of status and sector indicators in Pakistan, Namibia and Brazil (Geneva, ILO, 2008; see: http://www.ilo.org/public/english/employment/download/wpaper/wp13.pdf). Global Employment Trends for Women, March 2009 11

Figure 4 Distribution of female status in employment, 2007 (percentage point change from 1997 in parentheses) Contributing family workers 24% (- 9.3) Wage and salaried workers 46% (+ 3.7) Own-account workers 28% (+ 5.4) Employers 2% (+ 0.3) Source: ILO, Trends Econometric Models, January 2009, see also source of Table A2 The gender gap in the share of vulnerable employment in total employment for males and females shows a diverse picture by region. In the Developed Economies and the European Union, Central and South Eastern Europe (non-eu) & CIS and Latin America, and the Caribbean, this gap was negative in 2007, meaning that women are often in less vulnerable jobs than men. The largest gaps can be found in North Africa and the Middle East. Empowering women is one of the most pressing challenges these regions have to face, and the main route to reaching this successfully is by giving women the chance of a decent job. Heavy investment in women s education, changes in the labour legislation and recognition and sharing of family responsibilities with men set the preconditions for women to equally participate in labour markets. Sub-Saharan Africa and South Asia, two of the poorest regions, have not only a relatively high share of vulnerable employment in total employment, but also a relatively large gender gap in vulnerable employment shares (exceeding ten percentage points). The sectoral distribution of male and female employment, as well as the differences in vulnerable employment shares, underline the fact that widening access to labour markets is not the same as providing access to decent jobs. At the country level, the difference labour market access and access to decent work can be illustrated by examining Pakistan. Labour markets in this country are characterized by large gender gaps (see Box 1), but recent industrialization has certainly expanded access to labour markets for women. From 2000 to 2006, the employment-to-population rate, for example, increased by almost six percentage points. 7 However, during the same period, the share of vulnerable employment in total employment of women increased by 6.5 points. This was principally due to the increase in the number of female contributing family workers. Whereas for men close to two thirds of the additional employment that was created during 2000 to 2006 consisted of wage employment, for women more than two thirds consisted of contributing family work. Even in manufacturing, which constitutes the key source of employment creation outside the agricultural sector, the share of women in vulnerable employment is increasing. The opposite trend can be observed for males. 8 7 Pakistan Employment Trends No. 3 (Islamabad, Ministry of Labour and Manpower, 2008), Table 3. 8 Assessing vulnerable employment: the role of status and sector indicators in Pakistan, Namibia and Brazil, Employment Working Paper No. 13 (Geneva, ILO, 2008); see: http://www.ilo.org/public/english/employment/download/wpaper/wp13.pdf, Table 3. Global Employment Trends for Women, March 2009 12

Box 1 Women in Pakistan s labour market In 2007, more than nine million Pakistani women were employed, which is almost four million more than in 2000 (an increase of more than 80 per cent). Nevertheless, the employment-to-population ratio for women (19.9 per cent) is four times lower than for men (79.1 per cent) in the country and much lower than the ratio in South Asia as a whole (33.5 per cent). Despite a significant widening of employment opportunities, gender equality in terms of labour market access has not yet been achieved in Pakistan, and the same is true for conditions of employment. As Figure B1-1 shows, women who did find work are often confined to the agricultural sector of the economy and in status groups that carry higher economic risk and a lesser likelihood of meeting the characteristics that define decent work, including social protection, basic rights and a voice at work. Figure B1-1. Five dimensions of Pakistan s gender gap in labour markets, 2007 Share in vulnerable employment Labour force participation rate 100 80 60 40 20 0 Male 2007 Employment-to-population ratio Female 2007 Share in wage and salaried employment Share in non-agri. employment Source: Calculated using Pakistan Labour Force Survey, 2006/2007 (Islamabad, Federal Bureau of Statistics) In general, women also have lower wages than men, and their wages increase less over time (Figure B1-2). This can be explained in part by the large gap in educational attainment of women and men. In 2007, just 26.8 per cent of economically active women had more than 1 year of formal education, compared to 61.5 per cent of men. As reflected in growing literacy rates (from 29.1 to 39.2 per cent 2000 and 2007), relatively more women gained access to education, but equality in education is still far from being a reality in Pakistan. Figure B1-2. Pakistan, average monthly wages of employees, by sex Male Female Real wages (rupees) 5,000 4,500 4,000 3,500 3,000 2,500 1999/2000 2001/2002 2003/2004 2005/2006 2006/2007 Source: Pakistan Employment Trends, various issues (Islamabad, Ministry of Labour, LMIA Unit, see: www.lmis.gov.pk) Global Employment Trends for Women, March 2009 13

Gender inequality in African agriculture The recent food crisis showed the risk of ignoring agriculture, not only for the people living in rural areas but for the world as a whole, and international organizations as well as some governments have recently put a stronger focus on the sector. It is more and more widely accepted that rural development is a key to poverty reduction. But it is also a key to more gender equality as many women make a living out of working in the agriculture sector. Despite a decline in the share of agriculture in total female employment, agriculture still provides a living for many women and their families especially in Africa. Africa suffered more severely from the recent food crisis than other continents. Remarkably, the food crisis hit not only the least developed, agriculture-based countries in Sub-Saharan Africa, but also the better-off countries in North Africa where agriculture is no longer the main sector in terms of employment and is contributing little to GDP. One of the reasons why economies in Africa were so hard hit was the desolate state of the agriculture sector in both parts of Africa. As a result, Africa, which was more than self-sufficient in food 50 years ago, is now a massive food importer. 9 Many of the challenges facing Africa's agricultural sector stem from a few root causes, including poor political and economic governance, inadequate funding for agriculture, poor water resources management, and neglect of research and development. But throughout Africa another very important reason for the failure of the sector have been gender inequality and lack of empowerment of women, who are often running this sector. As was noted before, Sub-Saharan Africa is besides South Asia the region with the highest share of female employment in the agricultural sector. Even though more women work in the service sector in North Africa, agriculture still plays an important role in providing jobs for women in this region as well. Whereas in sub-saharan Africa the employment share decreased over the last ten years (by 6.6 percentage points 1998 and 2008) as in almost all regions, it increased in North Africa by 6.8 points (see Table A6b). There is little information available on the regional level regarding the key elements that would make employment in agriculture decent and productive. However, looking at vulnerable employment groups (own-account workers and unpaid contributing family workers) leads to interesting insights. Unfortunately, the indicator of vulnerable employment is not available by sector for many countries. But country level analysis does make it clear that the majority of jobs in agriculture are most likely lacking some elements of decent and productive work. Women mainly work as contributing family workers and men very often are own-account workers. And if women manage to change their status it often means moving from being an unpaid contributing family worker to being an own-account worker. As Figures 5a and 5b show, vulnerable employment and employment in agriculture changed in parallel in both Sub-Saharan Africa and North Africa. The sharp increase since 2002 of vulnerable employment in North Africa is remarkable and not seen in any other region. It is also interesting to note that the total number of female unpaid contributing family workers and female agricultural workers in North Africa are very close, making it likely that this status group makes up the majority of jobs for women in agriculture. In sub-saharan Africa the picture looks very different (see Figure 5b). Here there are more female own-account workers than contributing family workers and overall there are many more agricultural workers than contributing family workers. But again, both categories increased in parallel with the increase of female workers in agriculture, indicating that the majority of jobs created in the sector continue to be vulnerable employment, outside of economically less risky wage and salary jobs. 9 See: The African Food Crisis: Lessons from the Asian Green Revolution, ed. by Göran Djurefeldt, et al., Cambridge, 2005. Global Employment Trends for Women, March 2009 14

Figure 5a: Female employment in agriculture, by status, 1998-2008, North Africa (thousands) Figure 5b: Female employment in agriculture, by status, 1998-2008, Sub-Saharan Africa (thousands) Own-account workers Contributing family workers Employment in Agriculture 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 8,000 6,000 4,000 2,000 0 Own-account workers Contributing family workers Employment in Agriculture 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 *2008 are preliminary estimates Source: ILO, Trends Econometric Models, January 2009, see also source of Table A2 120,000 100,000 80,000 60,000 40,000 20,000 0 How can vulnerable employment be transformed into decent work? One precondition is that productivity must increase. This will not only lay the groundwork for earnings to rise sufficiently for people to escape poverty, but it is often the first step towards more social security and other components of decent work. Even though productivity in agriculture has increased in some countries, this increase has not been very impressive in many countries and the levels of output in economies in Sub-Saharan Africa remain very low. 10 Many countries have not seen an increase in productivity at all, making it almost impossible to take people in rural areas out of poverty. If one adds that women are often profiting less from wage increases induced by productivity increases than men as a result of the weaker status of women, it is obvious that there has been very little potential for women to improve their situation and the situation of their families. Despite the differences in levels of productivity in North African countries and countries in Sub-Saharan Africa, and despite the different role agriculture plays in providing employment for women, women s daily work life characteristics all over Africa are similar. The majority of women in agriculture are smallholder subsistence farmers or spouses of smallholder subsistent farmers. They substantially contribute to national agricultural production and food security. Large scale farming and commercial production is less of an income source for women in rural areas, which is why structural adjustment programmes often do not reach women. It is estimated that rural women in Africa produce 80 per cent of the food. 11 They do most of the work in storing, processing, transporting and marketing food. It has been shown that when women receive the same levels of education, experience and farm inputs as men, they can increase yields of some crops by 22 per cent. 12 But the important contribution of women takes place under difficult circumstances, as highlighted in Box 2. 10 Key Indicators of the Labour market (Geneva, ILO, 2007). See: http://www.ilo.org/public/english/employment/strat/kilm/. 11 World Employment Report 2004 05 (Geneva, ILO, 2005). See: http://www.ilo.org/public/english/employment/strat/wer2004.htm. 12 International Food Policy Research Institute (2005): Women: still the key to food and nutrition security. (Issue brief 33) Washington, DC. See: http://www.ifpri.org/pubs/ib/ib33.pdf. Global Employment Trends for Women, March 2009 15

Box 2 Characteristics of women in African agriculture Women generally own less land and the land they have is often of lower quality than the land owned by men. According to the International Development Research Centre, women in Africa only own 1 per cent of the land.(1) Financial resources are limited for women: they receive 7 per cent of the agricultural extension services and less than 10 per cent of the credit offered to small-scale farmers.(1) Population growth is still a pressing issue in Africa and families in rural areas have more children than in urban areas. Population in North Africa is currently growing at a rate of 2.2 per cent a year and in sub- Saharan Africa the rate is 2.7 per cent. This has forced farming families to sub-divide their land time and again, leading to tiny plots or families moving onto unsuitable, overworked land. This problem is compounded by the state of Africa s soils. In Sub-Saharan Africa, soil quality is classified as degraded in about 72 per cent of arable land and 31 per cent of pasture land.(2) Male rural-to-urban migration continues to be an Africa-wide phenomenon. While this can increase remittances to rural areas and strengthen market linkages urban and rural areas, it leaves rural women increasingly responsible for farming and for meeting their households immediate needs. Women have to take over the tasks formerly carried out by men in addition to those for which they are traditionally responsible. Women have to contend with limited access to financial and technical resources. They often must depend on local know-how and cannot access appropriate technology. Women lack political influence. They are not represented when policies are formulated, when programmes are developed, when budgets are drawn or when decisions are made about their work and their life. Even within farming organizations, the pattern is frequently found: in Zimbabwe, for example, women constitute about 75 per cent of the members of the Zimbabwe Farmers Union, but only 5 per cent of the officers are female.(3) Social protection systems are almost non-existent in rural areas in Africa, but if they exist they often discriminate against women. Girls receive less education, especially in poor rural areas. Social norms play a much stronger role in rural areas, often discriminating against women and girls. Decision-making structures within families are not in favour of women, making it difficult for them to secure a better future for their daughters. (1) Quoted from http://www.new-ag.info/08/04/focuson/focuson6.php. In some countries, legislation makes it impossible for women to inherit land when their husband dies. They can also often not pass the land on to their daughters (see, for example: Judy Oglethorpe, AIDS, women, land, and natural resources in Africa: current challenges, Gender & Development, Volume 16, Issue 1 March 2008, pages 85-100). (2) Food and Agriculture Organization (FAO), quoted from http://news.bbc.co.uk/1/hi/world/africa/4662232.stm. (3) See: http://www.new-ag.info/08/04/focuson/focuson6.php. Given the key role of women in the agricultural sector, improving their situation means progress for the sector and for the economy as a whole. And many of the measures that would be beneficial are not even costly to implement. The list of possible measures includes: increasing women s access to farming land and fertilizers, credit, and education; increasing women s participation in decision-making; and strengthening women s role within the family. All these measures are crucial to guaranteeing food security and improving the nutritional status of children. According to a study conducted by the International Food Policy Research Institute, if men and women had equal influence in decision-making, an additional 1.7 million children would be Global Employment Trends for Women, March 2009 16

adequately nourished in sub-saharan Africa. 13 The impact would be of similar importance in North Africa. The case of North Africa showed that agriculture can be a creator of new jobs for women, and even though they often enter the labour market under vulnerable conditions, being part of the labour force already gives them additional economic power. The potential which the sector offers in creating jobs for women should be used in other regions as well. However, job strategies have to be developed while keeping in mind that in the long run only decent jobs have a sustainable impact on poverty reduction. An often discussed question is whether Africa can reach the MDGs by the year 2015. North Africa might be closer to reaching the goals than Sub-Saharan Africa. However, due to the current economic crisis, the likelihood of reaching the goals has diminished. Strengthening the role of women in agriculture and ensuring decent work for a growing number of women is one step to help economies to get back on track. This would help to reach the MDG 1 on halving the share of poor people, and especially the newly introduced target on productive employment and decent work for all. Policies and efforts to strengthen the role of women in agriculture need of course to be embedded into a broader strategy of rural development. Such a strategy should include reform of agricultural policies to strengthen the sector, and also reform of trade and tariffs. In addition, domestic subsidies, protective tariffs, and other trade barriers imposed by wealthy nations harm farmers in Africa and other poor developing nations. Investments are needed in rural infrastructure, education and social capital. Agricultural input and crop technologies should focus on land and natural resources conservation, while at the same time increasing agricultural productivity. Finally, dramatic increases in investment in agricultural research and extension are needed if any plan for food and nutrition security in Africa is to be successful. Gender inequality in wages One of the dimensions of access to decent and productive employment is the measure of the gender pay gap (or gender wage differential), i.e. the difference the wages earned by women and those earned by men. Gender wage differentials may be best explained by a variety of factors, such as occupation, age, education, work experience and seniority in job, job tenure, training, occupational segregation, etc. Other factors such as the regulations and practices concerning workand-family life, childcare facilities and other social rights play a significant role in the participation of women in the labour force, in their occupational choices, and in the employment patterns that affect the gender wage gap. Important questions are whether there is equal remuneration for work of equal value, and whether occupational segregation and wage differentials within countries have widened or narrowed recently, but such questions are difficult to analyse in view of limitations in both research and data. For employees, an appropriate type of wage statistics would include detailed levels of occupational wages (either wage rates or earnings), as occupations can be taken as a proxy to similar or comparable levels of education, skills, etc. if not seniority in the job. Recent analyses of labour markets in Europe and Central Asia reached the conclusion that although the reduction of the gender pay gap is a major political objective for governments and the social partners, progress remains slow and the situation has even deteriorated in certain countries. In 2007, the European Commission noted that one of the consequences of the differences and inequalities which women face on the labour market is the persistent gender pay gap. Women earn an average of 15 per cent less than men for every hour worked. 14 In the United States, several studies of the National Committee on Pay Equity show that wage gaps continue to exist there and that the wage gap has been closing at a very slow rate. 15 According to an article produced by the International Poverty Centre in 2008 focusing on gender gap 13 See: http://www.unicef.org/sowc07/press/release.php. 14 Report on equality women and men - 2007, European Commission, Directorate-General for Employment, Social Affairs and Equal Opportunities, February 2007. See: http://ec.europa.eu/employment_social/publications/2007/keaj07001_en.pdf. 15 See: http://www.pay-equity.org/. Global Employment Trends for Women, March 2009 17

indicators among urban adults in Argentina, Brazil, Chile, El Salvador and Mexico, the female hourly wage was around 80 per cent of that of males for all countries, except Argentina with a ratio of 92 per cent. 16 Evidence from Bangladesh suggests that women tend to be concentrated in lower-paying industries, and do not have access to the same type of jobs as men. Furthermore, even after controlling for differences in age, education, industry and other factors, there remains a gap in wages men and women. Such a gap raises concerns about discriminatory practices (see Box 3). Box 3 Lower wages of Bangladeshi women raise concerns about discrimination Why do Bangladeshi women earn so much less than their male counterparts? This question was the starting point for a recent ILO Working Paper, The gender wage gap in Bangladesh.(1) The study analysed data from the largest ever national occupational wage survey in Bangladesh, which was conducted in 2007 by the Bangladesh Bureau of Statistics (BBS) with technical and financial support from the ILO. The study focuses on data for approximately 41,000 workers for which hourly wage rates could be calculated from the survey data. Using econometric modelling techniques, the paper presents the first estimates of hourly gender wage gaps by level of education, establishment size and individual industry. It highlights the significant effect of gender-based occupational and industrial segregation in shaping men s and women s average wage rates in Bangladesh. Even after controlling for factors such as differences in age, education, industry, occupational type and location, women earn 15.9 per cent less per hour than men. Furthermore, the survey data indicate that women tend to be grouped in lower-paying industries and do not have access to the same types of jobs as men. If this segregation effect is factored in, the gender wage gap increases by 7.2 percentage points to an estimated 23.1 per cent. The largest male-female wage gaps are in the construction and hotel and restaurant industries (in which women earn an average of 30 per cent less than men per hour), and in small- to mid-sized enterprises (those with 6 and 20 workers). The smallest gaps are in the service industries, such as education, health and social work. The study showed that as women s education increases, the male-female wage gap decreases, because women tend to see more benefits from additional education in terms of earnings than men. Completing secondary education carries a major benefit: while women who have not completed primary education earn an average of 22 per cent less than their male equivalents, this differential narrows to only 4 per cent for those with secondary education. It is evident that investment in education at both primary and secondary levels could play a substantial role in lowering the overall gender wage gap in Bangladesh. The survey results also indicate that if policy-makers focus on measures to reduce occupational segregation, this could go a long way to reduce gender-based earnings inequalities. Progress on these two fronts could promote broad-based social and economic development in Bangladesh, as higher levels of educational attainment would improve worker productivity, while breaking down occupational segregation would promote greater equity and efficiency in the labour market. (1) S. Kapsos, 2008. The gender wage gap in Bangladesh, ILO Asia-Pacific Working Paper Series, May 2008; http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/publication/wcms_098063.pdf. In his Report prepared for the 8th European Regional Meeting, the Director-General focused on the trend in the wage gap, concluding that, on average, the gap men s and women s wages narrowed in the EU 1995 and 2006. It narrowed by over 10 percentage points in Hungary, Ireland, Lithuania and Romania. However, it widened in five of the EU-27 countries: Denmark, Germany, Italy, Portugal and Sweden. In 2006, the gender wage gap ranged approximately 4 per cent in Malta and 25 per cent in Estonia. In Turkey, men employed in 16 The Burden of Gender Inequalities for Society, by J. Costa, E. Silva and M. Medeiros, in Poverty in Focus, International Policy Centre, January 2008. See: http://www.undp-povertycentre.org/pub/ipcpovertyinfocus13.pdf. Global Employment Trends for Women, March 2009 18